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Jan 23, 2011

TRUCKMAKER'S CORRUPTION * Germany - MAN demands 237 million euros from former CEO

Hakan Samuelsson left MAN after the corruption scandal in 2009

Munich,Germany -AFP/DPA/DW World, by Kyle James & Sam Edmonds -17 Jan 2011: -- German truckmaker MAN is demanding its former CEO, Hakan Samuelsson, pay more than 200 million euros in damages out of his own pocket in connection with a bribery scandal. In addition to the 150-million-euro fine prosecutors demanded, Piece has added the cost of expensive internal investigations to the bill... Samuelsson is not the only former MAN executive who is being asked to pay dearly for past actions, or inaction, in the bribery scandal. Six former board members have received letters in the mail, including Karlheinz Hornung, MAN's former finance chief, and Anton Weinmann, former head of MAN's commercial vehicle arm. Several of the bills are for over 100 million euros... MAN's supervisory board, which is headed by Ferdinand Piëch, a hard-driving Austrian who is also the chairman of Volkswagen, is seen as a ruthless, but successful, leader... In May of that year, prosecutors opened an investigation into the MAN, suspecting its sales force was paying kickbacks to secure truck and bus contracts. A Munich court fined the company 151 million euros in December 2009 for failing to prevent bribery... After the MAN scandal broke, Samuelsson introduced new anti-corruption guidelines, replaced regional sales heads and made other efforts to stop long-ingrained, but questionable, practices... It is also whether liability insurance that MAN executives had taken out could cover the bills. According to the report, their "Directors and Officers" insurance policy covered up to 200 million euros in damages... Some observers wonder if Piëch is setting a new bar for personal liability when it comes to big German companies and corruption scandals... (Photo from nimg.sulekha: The headquarters of German truck manufacturer MAN are seen in Munich)

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May 11, 2010

CORRUPTION * USA - Allegations made against Panalpina and EGL

Washington,DC,USA -Transport Intelligence (UK), by Thomas Cullen -10 May 2010: -- The American Department of Justice has entered a case against Panalpina, EGL (now part of CEVA) and the defence contractor Kellogg Brown and Root (KBR) alleging corruption in forwarding contracts for logistics serving US forces in Iraq... According the US Department of Justice the allegations are related to earlier cases against EGL concerning "non-existent charges for war risk insurance in invoices to KBR for air shipments to Iraq". These resulted in EGL being fined $4m and two EGL managers being convicted of criminal charges. The Department of Justice also asserts that EGL was fined over $1m over issues of over charging for container demurrage and bribing KBR employees in Kuwait... In such cases any defendant found guilty is liable not only to fines but is required to compensate the government for any losses it may have incurred from the illegal activity. This often amounts to larger sums than the fines themselves... Although EGL appears to have limited the damage of the earlier convictions, Panalpina has suffered badly from previous cases of alleged corruption. Most recently its Nigerian business was shut down as a result of a case again launched from the US, therefore these latest allegations must be particularly uncomfortable... (Photo: Panalpina flag)

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Apr 15, 2010

CORRUPTION * USA - Trucker accosted by WY trooper sues the state

Cheyenne,WY,USA -Land Line Magazine, by Charlie Morasch -April 14, 2010: -- A Wal-Mart truck driver kidnapped and accosted by a state trooper in Wyoming who considered killing the driver has sued the trooper and several other state officials... In November, former trooper Franklin Ryle Jr. was sentenced to 15 years in prison for the kidnapping plot, which included plans to kill the driver before staging a crash and collecting settlement money from Wal-Mart... On Jan. 8, 2009, Ryle pulled Colorado trucker Richard Smidt over on Interstate 25 outside of Douglas, WY. Ryle took Smidt into custody but didn’t take him to jail, and he later admitted that he considered killing the truck driver... The FBI and the Wyoming Highway Patrol began investigating Ryle after his wife told her brother, a police officer, about her husband’s plan to kill Smidt... The investigation into Ryle also revealed that two troopers involved in the Wal-Mart truck scandal told Wyoming Highway Patrol supervisors they had been involved in smuggling steroids into the U.S. from Mexico and had used steroids while they worked as state troopers...

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Mar 11, 2010

Corruption * Russia - Keeping Highways among Worst in the World, Investigators

Moscow,Russia -The Georgian Daily, by Paul Goble -March 9, 2010: -- Russia ranks 118th out of 133 countries, right alongside Mozambique and Burundi, in terms of the quality of its highways, according to the latest report of the World Economic Forum, a ranking that is the result, Russian investigators say, of the outmoded construction practices and massive corruption such practices invite... But what is still worse, according to a set of articles in the current issue of Moscow’s “New Times,” the poor quality of Russian highways is not only limiting economic growth by slowing the movement of freight and increasing its cost but also resulting in the second highest rate of highway fatalities in the world... And as if to add insult to all these injuries, the weekly magazine cites experts who say the actual size of Russia’s highway system has declined over the past 15 years, despite the government’s use of statistical manipulation to allow the powers that be to claim that there has been a slight increase instead... That too entails enormous costs to the Russian economy, and it could relatively easily be changed if Russian road builders were to adopt the standard practice, increasingly used even in China, of putting iron and steel plinths in the concrete to give them greater stability and longer life, something Russian concerns do not yet do... That would not only save money but it would save lives. According to the World Health Organization, “New Times” says, “Russia occupies the second place in the world [in highway deaths] – 25.2 per 100,000 people,” second only to Kazakhstan with 30.6 deaths per 100,000 residents... Given all the advantages of building more and better roads, the news weekly asks, why do Russian enterprises not do it? And it says that “the answer which experts gives unanimously is corruption,” a plague which “boosts the price of the construction of roads tens of times” and one bureaucrats don’t fight because they can earn more by not doing so... (Photo from englishrussia: highway holes)


* Red Tape, Corruption Could Impact Russia's Cash for Clunkers

Moscow,Russia -
Business Week - March 5, 2010: -- Dealers worry Russia's Cash for Clunkers program won't meet goals. Concerned over government red tape, corruption... Russian car sales down 56% last year... More than 1,560 dealers across country expected to participate... Russia offering 200K vouchers worth $1,677 toward purchase of Russian car... Customers must turn in car 10 years old or older; AvtoVAZ likely to benefit most... Dealers wary because they must pay owners for old vehicles... Then hope to reclaim cash from government; worry over program transparency... Experts say target audience likely to purchase inexpensive vehicles under Cash for Clunkers... "The program is about to start, but there is still no transparency in the process. The government is expected to cover towing costs, for example, but it's unclear how to get the rebate" ... Valery Sheromov, Piter-Lada dealer...

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Oct 12, 2009

'Slush Fund' * Australia - Truckers still paying union one

The fund lacked transparency and was riddled with audit problems

Sydney,NSW,Australia -The Age, by LINTON BESSER -October 12, 2009: -- Trucking firms are still pouring money into a secretive Transport Workers Union slush fund almost two years after investigations found the fund lacked transparency and was riddled with audit problems... The union and its then NSW state secretary, Tony Sheldon, were engulfed in controversy when the so-called training fund was first exposed... Union members had been unaware their employers — including Linfox, Dairy Farmers and Toll — had been secretly making payments to the union while it was also negotiating wage agreements. But since then little has changed... In February 2008, Mr Sheldon released a review of the fund by Deloitte Touche Tohmatsu, which found the fund's managing "council" did not exist and that there was no documentation "that addresses financial management processes".... Last year, the union mailed a summary of the fund's 2007 accounts to members... But this year's version of the same document provided no details on the fund. In the five years to 2005 up to $2 million was given to the fund... In March, state secretary for NSW, Wayne Forno, had announced the fund would be managed from July by a new company, the Transport, Education, Audit, Compliance and Health Organisation, said employer contributions would eventually be transferred to the new company... (Image from TWU)

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Oct 21, 2008

CORRUPTION * Slovenia - Hauliers Complain about Corruption in Hungary

Ljubljana,Slovenia -STA -20 October 2008: -- Slovenian hauliers have complained about obstacles they face in travelling through Hungary, including growing corruption among officials. They threatened to close off roads to Hungarian lorry drivers if the matter is not resolved... (STA: The rest of this news item is available to subscribers)

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May 11, 2007

* Afghanistan -Bring back Taliban to end police corruption, say truckers

Afghanistan -What Really Happened (USA), by Michael Rivero -May 10, 2007: -- When the Taliban first rose to power in the mid-1990s, it was in part a response to the rampant lawlessness on Afghanistan's roads, which had been dominated by the illegal checkpoints of warlords. Travelling anywhere was a gamble, and leading figures in the transport industry supported Mullah Mohammed Omar's fundamentalists because they longed for security. According to today's truck drivers, history is in danger of repeating itself... One can see, from this article, just how magnificently well the NATO "occupation" of Afghanistan is going in terms of ridding the country of crippling corruption...

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Apr 3, 2007

Corruption * India - Cargo of, uncovered

Hubli,India -The Times of India (New Delhi,India), by MANU AIYAPPA -2 Apr, 2007: -- A traffic inspector caught on camera accepting money from a truck operator transporting manganese ore here has exposed the unholy nexus between police and truck operators... Police inspector Shivashankar Gadad was suspended after he was caught red-handed while accepting Rs 1,000 from journalists of a private news channel who posed as truck operators... While this was probably the first "sting operation" of its kind reported in the region, the issue has brought to light the infamous "monthly culture" in the police department... "The monthly is collected and delivered by a representative of the union at a designated spot. This reduces the risk of a policeman on duty getting caught," a traffic policeman said. The racket is more common in commercial areas, the starting point for a large number of trucks and light commercial vehicles. A year ago, the range IGP Doreswamy Naik had led a team and seized such tokens. When contacted, senior police officers refused to comment on the issue, while the police commissioner was unavailable...

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